Mobile wireless technology firm Spiral Toys Inc (OTCBB:STOY) disclosed that it received an initial purchase order of 500,000 units of CloudPets toy line from associate Jay@Play. It is a renowned global distributor and offers its services to several retailers such as Wal-Mart Stores, Inc. (NYSE:WMT), Target Corporation (NYSE:TGT), and many others.
The new order becomes the largest order of Spiral products to date and can be attributed to the direct response campaign run in April. The Bluetooth Smart communications module of the firm allows each CloudPet device to wirelessly connect with tablets and Smartphones, and offers a “message user can hug” from any location in the world.
The expert view
Mark Meyers, the CEO of Spiral, said that the initial launch of 500,000 units in North America is a significant achievement for CloudPets, and is indicates the strength of company’s strategic plan. The three-pronged revenue plan, starting with the device’s development, and continuing through the complete lifecycle, is proving to be a successful model. Apart from the 500, 000 unit order, Spiral is in process of taking orders in response to its TV advertising campaign which was launched earlier this month.
The three-pronged revenue plans includes licensing and hardware fees for technology, the sale of the device to the customer, and the ongoing revenue from digital content creation and in-app purchases from that end-user. Meyers of Spiral further added that the management is of view that the CloudPets orders will increase the revenue outlook for 2Q and 2Q, as well as for digital revenue in 4Q. The company is thrilled by new purchase order which will support the development of business.
In last trading session, the stock price of Spiral surged more than 11% to close the trading session at $0.570. The gains came at a share volume of 634,546 compared to average share volume of 65,277.